
Prisoner's dilemma games imply that cooperative behavior between two people or two firms always breaks down.But reality teaches us that people and firms often cooperate successfully to achieve their goals.Why do the results from prisoner's dilemma games fail to predict real-world results?
A) Prisoner's dilemma games do not permit people or firms from reneging on agreements, which often occurs in real-word situations.
B) The prisoner's dilemma does not apply to most business situations that are repeated over and over.
C) Prisoner's dilemma games predict the behavior of people and firms that engage in illegal activity; most people and firms do not resort to illegal activity.
D) Most real-world situations involve more than two people or firms; the prisoner's dilemma is only applicable to situations that involve two parties.
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Q144: Table 14-7 Q145: Table 14-7 Q146: Two firms would sometimes be better off Q147: A form of implicit collusion where one Q148: Table 14-6 Q150: An equilibrium in a game in which Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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